Buy or wait: when car loans get cheaper in Russia
- October 6, 2022
- 0
For the rich, as we recently found out, the years that recently ended, Russians are used to using borrowed money when buying a car. Today, however, this mechanism
For the rich, as we recently found out, the years that recently ended, Russians are used to using borrowed money when buying a car. Today, however, this mechanism is extremely flimsy, as lending rates have risen so much that they have become virtually unaffordable for the majority. When the “bank money prices” return to their usual rate and whether they will return at all, the AvtoVzglyad portal found out.
Loans rose in price immediately after February 24 for a very simple and deeply structural reason: the Central Bank raised the refinancing rate – we remember it rose to 20% on March 4. In comparison, the segment from mid-2020 to March 2021 has the lowest indicator, when the “parameter” was set at about 4.25%.
Simply put, commercial and state banks now borrow money from the Central Bank at an interest rate that is the same. Furthermore, they lend to the population and pledge their own allowance, which includes not only utility costs, salaries and profits, but also risks.
The percentage of defaulters has risen significantly – many have simply lost their jobs and are unable to pay – which is why financial institutions are starting to take their default (both current and possible in the future) into their interest. And he, in turn, already contributes to the refinancing rate at which the bank borrowed money from the state. Is the lender operating at a loss? No, otherwise it will cease to be and become a charitable organization.
The observant reader will no doubt wonder which investment banks had many auto importers and provided loans at low rates in the best years. So here are a few more preserved. No rates, but banks. But then, in the 2010s, funds were borrowed at “nice” interest as part of marketing campaigns. The bank provided a loan, and later partially offset its payment, since its job was not only to make a profit, but also to promote sales of the products of the parent organization, i.e. the automaker.
Now there are few cars, no need to encourage anyone to buy them, and they sell like hot cakes, and the refinancing rate is 7.5%. Moreover, there is no reason for further reduction. On the contrary, to magnify: the situation in the economy – both in Russia and around the world – is extremely unstable. And the lower the rate, the cheaper the money, the more reasons for inflation, which is now actively being worked on.
Elvira Nabiullina, the chairman of the Central Bank of the Russian Federation, is not inclined to sharp turns and hasty decisions, so one should not expect global changes in the policy of the financial institution in the near future. Unless, of course, something catastrophic happens like February 24, 2022. Therefore, the best prediction for the purchase of a car, even with the involvement of debt financing, it is also a loan, will sound simple: today is better than yesterday and it is more expensive to buy tomorrow. to waive the account.
Photo: www.carwale.com
Loans rose in price immediately after February 24 for a very simple and deeply structural reason: the Central Bank raised the refinancing rate – we remember it rose to 20% on March 4. In comparison, the segment from mid-2020 to March 2021 has the lowest indicator, when the “parameter” was set at about 4.25%.
Simply put, commercial and state banks now borrow money from the Central Bank at an interest rate that is the same. Furthermore, they lend to the population and pledge their own allowance, which includes not only utility costs, salaries and profits, but also risks.
The percentage of defaulters has risen significantly – many have simply lost their jobs and are unable to pay – which is why financial institutions are starting to take their default (both current and possible in the future) into their interest. And he, in turn, already contributes to the refinancing rate at which the bank borrowed money from the state. Is the lender operating at a loss? No, otherwise it will cease to be and become a charitable organization.
The observant reader will no doubt wonder which investment banks had many auto importers and provided loans at low rates in the best years. So here are a few more preserved. No rates, but banks. But then, in the 2010s, funds were borrowed at “nice” interest as part of marketing campaigns. The bank provided a loan, and later partially offset its payment, since its job was not only to make a profit, but also to promote sales of the products of the parent organization, i.e. the automaker.
Now there are few cars, no need to encourage anyone to buy them, and they sell like hot cakes, and the refinancing rate is 7.5%. Moreover, there is no reason for further reduction. On the contrary, to magnify: the situation in the economy – both in Russia and around the world – is extremely unstable. And the lower the rate, the cheaper the money, the more reasons for inflation, which is now actively being worked on.
Elvira Nabiullina, the chairman of the Central Bank of the Russian Federation, is not inclined to sharp turns and hasty decisions, so one should not expect global changes in the policy of the financial institution in the near future. Unless, of course, something catastrophic happens like February 24, 2022. Therefore, the best prediction for the purchase of a car, even with the involvement of debt financing, it is also a loan, will sound simple: today is better than yesterday and it is more expensive to buy tomorrow. to waive the account.
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
